CHEQUE COLLECTION POLICY ‘12
1. Bank's Cheque Collection Policy (CCP) is reviewed annually, as per the guidelines issued by Reserve Bank of India (RBI)/IBA/BCSBI from time to time. The Policy duly approved by Bank’s Board of Directors shall be read as Bank’s Cheque Collection Policy -2012-’13. 2. Bank’s Cheque Collection Policy document has been formulated as a comprehensive document with transparency covering following aspects, taking into account our technological capabilities, systems and processes adopted for clearing arrangements and other internal arrangements for collection through different methods. The procedure for collection of domestic cheques/instruments and international instruments have been placed in Annexure-I & III respectively, which, inter alia, incorporate the following:
a) Detailed procedure for collection of cheques (local and Outstation). b) Collection of cheques between two banks and between CBS and non-CBS branches of other banks. c) Reduced time frame for collection of outstation/local cheques drawn on branches of the Bank d) Penalty for delayed collection in a progressive manner e) Amounts of cheques up to which immediate credit is to be provided. f) Revised business processes keeping in view the BPR initiatives taken and technological progress made by the Bank viz:
i) Core Banking Solutions (CBS)
ii) Centralised Clearing Processing Centre (CCPC)
iii) Multicity Cheques (MCC)
iv) MICR Clearing Centres (MICR CC)
v) Speed Clearing System (SCS)
vi) Cheque Truncation System (CTS)
(Brief description of the processes/developments, in respect of the above is given in Annexure-I)
3. The Cheque Collection Policy covers following guidelines issued by the regulators for smooth conduct of clearing cycle. i. The Service charges for savings bank customer for collection of outstation cheques up to Rs.1.00 lac has been mandated by the RBI w.e.f.1st April, 2011, whereas Banks have been given freedom to fix charges for current account customers and also for collection of outstation cheques beyond Rs.1.00 lac. Accordingly, State Bank of Travancore have rationalized the service charges for collection of outstation cheques, which is system enabled for realization of the same.
ii. The Service charges for Speed Clearing System has also been revised which is applicable for collection of outstation cheques in the local clearing treating the instruments as locally drawn.
iii. The above charges are applicable only to the transactions originated and payable in India.
iv. To reduce the clearing cycle and to promote electronic mode of payment, drawee banks are using RTGS/NEFT/ECS for remittance of funds.
v. In the case of collection of outstation cheques at centers, where the Speed Clearing System is not applicable, the collecting and paying banker has to share 50:50 charges for collection of outstation cheques.
vi. The SC/DDP automation has been implemented for collection of outstation cheques of other banks where the speed clearing system is not available in the clearing process.
vii. To improve upon the reconciliation process and as a deterrent against perpetration of fraud, Bank has introduced a single design security form, known as “Inter Office Instrument (IOI)”, covering all the three modes of remittance, viz; Draft, Bankers’ Cheque, Pay-order. This is payable across all CBS branches of SBT, thus obviating the risk of the fraudulent payment of such instruments
The Reserve Bank of India (RBI) have issued following guidelines subsequent to the issuance of our Bank’s Cheque Collection Policy-2010 for collection of Outstation cheques which have been incorporated in the revised Policy documents.
i. Standardisation and Enhancement of Security Features in...